CBIC clarifies Data Hosting Services not Linked to Immovable Property, Place of Supply cannot be Determined

The CBIC has issued a clarification regarding data hosting services, stating that these services should not be linked to immovable property when determining their place of supply under the IGST Act. This clarification addresses concerns that data hosting, often viewed as a service tied to physical infrastructure, might be taxed differently. By confirming that data hosting services are not classified as tied to immovable property, the CBIC has simplified the tax compliance process for IT companies offering these services to international clients.